CHUO MALLEABLE IRON CO., LTD. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of
change (%)
Factors
Overall
Sales 16,412 18,919 (13.3) -
Operating income 43 (997) - -Even though sales decreased, operating income increased because the Company installed high-frequency induction furnaces and implemented measures to improve profitability.
Ordinary income 225 (1,100) - -
Current net income (36) (1,552) - -
Automobile & other vehicle components
Sales 13,990 15,484 (9.6) -Sales decreased due to the Company’s steep production cuts at the beginning of the year.
Operating income 771 (150) - -

R&D

R&D Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Automobile & other vehicle components 2 2 22

R&D Structure

Automobile & other vehicle components
-The SE section is in charge of all activities, from development through to design, casting and appraisal.
-In order to respond to customers' needs calling for reductions in vehicle weight, costs and lead-time, the Company enhanced its customer-support in the areas of design and appraisal, from proposals on optimum component shapes to appraisal of prototypes, by providing both casting technology and CAE analysis. CAE designs and at the same time can analyze degree of strength, mold fill, and solidification at the 3D model stage.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 794 1,576 1,641
Automobile, other vehicle &
Industrial machinery components
789 1,563 1,636
-Casting 612 528 792
-Processing 177 1,035 844

Automobile & other vehicle components
-The cast parts segment focuses its investment activities on maintaining, revamping, and streamlining its existing production lines.
-The processing segment worked on streamlining production and reducing the number of its workforce.

New Equipment Installations

(As of Mar. 31, 2010)

Company/
Facility
(Location)
Equipment Planned amount of investment (million yen) Project period Capacity increase
From To
The Company
Nissin Plant
(Aichi, Japan)
Casting facilities 236 Mar.
2010
Mar.
2011
*1
The Company
Nissin Plant
(Aichi, Japan)
Processing facilities 279 Apr.
2010
Mar.
2011
*1
The Company
Kumamoto Plant
(Kumamoto, Japan)
Processing facilities 41 Mar.
2010
Mar.
2011
*1
Toki Malleable Iron Co., Ltd.
(Gifu, Japan)
Casting facilities 54 Apr.
2010
Mar.
2011
*1
*1: The project is to renew facilities, so the production capacity will remain unchanged.